Monday’s movers: Herbalife clobbered on FTC news

Raymond James ‘likes’ Facebook

KateGibson

SAN FRANCISCO (MarketWatch) — Shares of Hess Corp., Joseph A. Bank Clothiers Inc. and PetSmart Inc. made big moves during U.S. trading Monday, while Herbalife Ltd. and Yahoo Inc. were among top trending tickers.

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“Pyramid schemes are more like icebergs,” said C. Steven Baker, director of the FTC’s Midwest region. “At any point most people must and will be underwater financially,” he said in a statement.

The decision has no bearing on Herbalife, but the closure of Fortune Hi-Tech is making investors more jittery in the wake of accusations from Bill Ackman that the nutrition supplement company is a well-managed Ponzi scheme. Ackman’s claims have been countered vigorously by the company as well as high-profile investors such as Carl Icahn.

@apppro1: Im waiting for the FTC to call a press conference and label Social Security a pyramid scheme too. If they do, will that affect HLF also?

$YHOO: Yahoo
YHOO, -1.15%
shares closed down 0.3% but recovered in after-hours trading after the Internet portal reported fourth-quarter adjusted earnings of 32 cents a share, significantly above the 27 cents a share projected by analysts in a FactSet survey.

$FB: Facebook
FB, -1.18%
shares rose 3% following an upgrade to outperform from market perform by Raymond James. The move is based on expectations for increasing monetization of new and mobile services as well as signs of improving usage trends driven by mobile, Raymond James analysts said. The social-network operator is set to report fourth-quarter results late Wednesday amid a positive turn in investor sentiment. See: 10 key earnings in the week ahead.

@kiwitrader24: $FB is this week’s “Honey Badger”!

$RIG: U.S.-listed shares of Transocean
RIG, -0.27%
rose 2.5%. While Icahn was in the headlines Friday for his public and emotional spat with rival Ackman over Herbalife, a regulatory filing showed Icahn boosted his stake in Transocean to 5.6% and urged the company to declare a $4-a-share dividend. See: Icahn raises stake in Transocean.

Gainers

Hess Corp.
HES, -1.01%
shares added 6.1%, putting in the best performance in the S&P 500 index
SPX, -0.88%
following the energy company’s announcement that it plans to sell its terminal network in the U.S. and close its refinery in New Jersey by the end of February.

Keryx Biopharmaceuticals Inc.
KERX, -2.38%
rallied 77% after it said its kidney-disease drug had met its late-stage trial goal.

Decliners

Joseph A. Bank
US:JOSB
shares slumped 15% after the haberdasher chain late Friday warned that it expects net income for fiscal 2012 to fall about 20% compared with 2011. The Hampstead, Md.-based company said sales growth failed to offset higher marketing expenses and narrower gross margin.

PetSmart
US:PETM
shares fell 9.1%, the worst performer on the S&P 500, following a downgrade by Nomura Securities to a reduce rating from neutral previously. Analysts cited expectations of “multiple compression and lower estimates due to e-commerce concerns, senior management change and margins that have reached a plateau” for the rating change, as they also cut PetSmart’s price target to $55 from $72.

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